and obama and trump face off on the terror attacks in orlando. the war of words. and the latest poll conducted after the weekend attack. wednesday, june 15th, 2016. "squawk box" begins right now. >> announcer: live from new york, where business never sleeps, this is "squawk box." good morning, everyone. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernin and andrew sorkin. taking a look at equity futures, finally seeing positive direction for the bulls. dow futures up by 60 points. s&p up by 5, nasdaq up by 14 after the markets finished down once again yesterday. take a look overnight in asia, chinese stocks shaking off a high profile rejection from msci's emerging markets index. the shanghai ended up 1.5%.

in europe in this early hour, this has been our focus all week as concerns about the brexit rose. we've been looking at weakness in european stocks. you can see in early trading that most of these shares are up by 1%. dax up by 1%. ftse up close to that. take a look at crude prices. crude under pressure once again and again this morning. wti is below $48 a barrel. sitting at 47.95. brent sitting at 49.12. >> let's get you through the big stories we're watching today, it is another day and yet another survey on the brexit survey. coming from comres showing that the poll remain leads, in favor of the uk staying in the eu which is recovery from 55% reported yesterday. on some of the polls, by the way, the margin of error, on

some of these, is looking like 10%. hard to make a judgment what's going on. on the economic front, prices expected to rise .3%. the fed announces its decision as we said 2:00 p.m. eastern time. i laugh, because we know what the decision will be. and we will look for, as joe said -- >> a possibility that she might -- like there's a word "a maybe" word could go to a "might." we'll have leisman on about what that could mean. we parsed every word for five years now. >> i know. i'm over it. i'm with you. >> do you know how many times -- seriously, it's one word that used to be there about the economy describing it or if they

changed the word. >> and it's not moved whether it's there or not. >> 93 haven't raised it one quarter point. they haven't done anything. until they actually do something, let's just assume -- >> you're probably right about -- the thing with the brexit, that the sort of going to be compelling is that no one's going to believe what the latest polls are showing. no one's going to know which side this trade will be on. there could be a big surprise one way are 0 the otheor the ot. normally, you have an idea what's going to happen. if it's that close, probably stay is what's going to happen. the betting market, 62%. you really don't know. >> you don't know. >> potential for a huge surprise. then if you're on the wrong side of that, think of the global -- you never know. >> eight days, right? eight days from now? >> thursday. >> thursday.

>> today is wednesday -- so eight days. anyway, watch 2:00 p.m., or don't watch at 2:00 p.m., because we told you what's going to happen. >> no, no, watch. >> listen carefully, take notes. along with the latest economic projections followed by janet yellen's news conference which everybody should watch at 2:30. >> maybe they'll raise. >> maybe they won't raise. but it will be interesting. >> we do have also political news for you. hillary clinton's lead over donald trump in the presidential race has narrowed since last week. that's according to the results of the first reuters ipso poll. the poll showed that clinton's lead narrowed in the days since that attack. trump is blaming democratic policy for the worst in history. clinton on the other side warning against the humanization

of muslim americans. >> 13%. >> not that big. >> investigators are casting a wide net in the probe of that terrorist attack in orlando. it includes examining whether the wife of gunman omar mateen knew anything beforehand. reuters reports that she could soon face charges for failing to notify authorities about the impending attack. according to a sloshgreport, sh the fbi that she once drove mateen to the site because he wanted to scope it out. and another sad story, deputies are searching the waters that an alligator pulled a boy into the water at disney resort lagoon around 9:30. according to the orange county

sheriff. the family of five were vacations from nebraska. the child and his father were wading in about a foot of water. officials say they're gng to continue searching until they find out what really did happen. disney released a statement saying everyone here is devastated by this tragic accident. our thoughts are with the family. we're helping the family and doing everything we can to assist law enforcement. let's get back to this morning's global market news, msci, the world's largest index in the world not to include china stocks in the indices. eunice yoon joins us. eunice, that is a decision in the past and analysts that we speak anticipate it might be added and that would in turn call for more global demand for some of these stocks. what the the fallout? >> absolutely, we did see, as

you guys were talking about, the stock markets shrugging off the msci's price decision. but there are many investors here. that's because of the runup in the decision, china's meeting pumping up the expectation that china's domestically traded stocks are going to be included in the premiere index. but the msci basically said that they didn't believe that the markets here were open and transparent enough to warrant inclusion. of course, over the past cub of weeks, chinese authorities have been hoping for a different answer and they've really been trying to address concerns of the msci. they've been curbing trading, for example, and widening access for foreign investors. but the problem is investors still don't feel comfortable enough by what they see as constrained access to the chinese market. also many expressing concern

over the government's policy and approach towards the stock market, saying it's so unpredictable, since they have stepped in so aggressively during the turmoil last year. today, it's interesting to see the government's reaction in the way that they're trying to manage the potential fallout from this msci decision. we saw the state-run news agency xinhua run a commentary, telling investors that they shouldn't feel irritable, that it's just a matter of time before china is included in the index. and also c-rated, and they say they'll continue with the financial reform program that authorities here say it's so important for china on its own. but they also said that they believe that china is such an important market and shouldn't be ignored. and any global index that does not include chinese stocks is what they called incomplete. guys.

>> eunice, there's a story on the front page of "the wall street journal" here in the united states, talking about now disney opening the chinese disney park, bob iger had to give up on disney demands because it was disney, a force to be reckoned with, being meeting up against the chinese government. and the chinese government won in that situation. in a situation like this, we're still waiting to see who blinks, msci or the chinese government officials. >> i think it's going to be really difficult to say, i mean, china is going to be up for review again in about a year. one of the points that the msic had made is that this wasn't the final decision and in fact was delayed. but it's an issue that we're seeing not only with the msci but also with the imf. there's a lot of discussion about whether or not the imf is

going to include the rmb into the basket. there are people that think that the imf blinked and that the yuan shouldn't have been included. that kind of thinking was also the same. you've seen a lost debate among investors as well as analysts here. other one debate going on is how a lot of the investors were latching on to the fact that pakistan was included in the msci index. and there were aggressive newspapers calling on the regulators to create a more open and transparent environment. i don't know if this is a face issue, but it seemed as though a lot of these more progressive papers were feeling uncomfortable with the idea that pakistan would elevate itself to emerging market index status, when china has still yet to go. >> eunice, thank you very much. good to see you. let's get another check on the futures this morning. as we showed you, we're actually

see something green arrows this morning with dow futures indicated up by about 64 points. s&p futures up by over 5. nasdaq up by 16. of course, we're waiting to see what the central bank says later today. what janet yellen will say that those comments, statements. joe's closing his eyes and nodding his head. >> she's got a lot of body language. >> check out the beyond market. this is the most interesting market to watch. not just the u.s. treasury but what's happening nationally. german bund fall in negative territory. the ten-year note at 1.637%. but jeffrey gundlach making comments about where you're seeing control. the bond market is where it's playing out. if you look at currencies this morning. the dollar is down against the euro at 1.1224. it's up against the yen.

it's a reversal of all week long. the yen sitting at 106.27. the yen was strong, the pound was weak. and the euro, too. we want to take a look at what's happening with gold prices down by 1.2%. buying opportunity, joe. >> gundlach -- when did the central bankers lose control, 1986? that's 30 years. when did -- we haven't lost -- this is u.s. -- they're just now losing control, you think? >> i think he thinks that things are out of their hands. they've been trying to wash their -- >> people say qe 1 may have worked qe 2 and 3 not at all. we've been able to get out of

this -- all of this has generatgenerat generated a. .08. >> for more on the fed, joe, financial strategist, and you're karin, not caron. >> jim karin, global fixed income global portfolio manager at morgan stanley. >> it would be bad to shock the markets to say, surprise, we had you all set up for -- it would be bad? >> i think it would be really bad. futures probabilities are zero percent. i think the question is how does the fed actually feel about the fed being priced at 50%.

the fed will have two rate hikes in their bias. the long-temple neutral rate from 2.35 to possibly 3. they'll probably adjust it down. showing three rate hikes a year, as opposed to 4 1/2 rate hikes. but, look, the fed is not the only central bank. you also have the doj. it announces tonight. if you're looking for excitement around a central bank, that might be it. that's 50/50. >> whoa. what time? >> it's around midnight. you're going to have to stay up. >> whew. >> this might be worth it. get your bare red bull out. >> you still think july is out? >> if july's going to happen a lot of things have to happen between now and then. there's a zero percent in june

happening. right now, july is pointing to 18% to 20%. the fed gains absolutely nothing by coming out and shocking the markets. in order to have the feds come out and raise rates and the market expecting it -- >> why would they gain nothing. >> if you throw out the idea that the central banks are going to be popping this stuff up. it seems like -- >> one less they have to do later. >> well, you're shocking the markets negatively. you're going to create more volatility. i think one can argue the felds had a third mandate which is providing market stability. >> that's crazy. >> congress never said -- >> they never did. you can argue that the fed is watching not only with the u.s. economy but what's happening abroad. so, of course, this brexit. >> people are looking at markets that have been artificially

propped up. assuming that's going to happen endlessly. >> i think the fed has painted themselves into this corner. they're in a very difficult place as pointsed out a few times, the fed is losine ing control. >> you know the fed is part of the problem, not part of the solution even right now? >> i would argue that the fed probably should have raised long ago. if their bias is to raise rates two times -- >> if you would have done that long ago and you still got something, wouldn't you want to start today? >> well, you could start today. what happens if today's off the table. you have july which obviously is a very big maybe. but i think it's a long shot. if july doesn't happen, now you're pushing september. >> we take joe's approach, just sort of take your medicine now. what would be the real impact of, i think, if the rates

increase right now, what would happen? >> a quarter point would do nothing. let's be clear. interest rates are incredibly low. we're going from very low to low. >> zero, zero impacty. >> i think as far as the real economy, bond market and interest rates? close to nothing. >> you're not bolstering your case. that's what i'm trying to understand. >> well, i think the negative impact it creates on markets -- >> if 2 has a negative impact on markets is that going to a negative impact on some way you're not counting on the economy? ultimately, do you believe that if you sit in that declachair a believe the way you do? >> i believe it has an impact on markets answ s and sentiment. i think if you look at the fed and focus on their mandate and what it is they're supposed to do, looking at the market and inflation, there's a strong

argument to be made that they need to raise rates. i just don't think we're going to do it. >> it's just that we're coddling, okay. they don't know everything that's going to happen. oh, my, i'm on the other side. there's risks. this is how things work. at zero, it's almost like you can't mac any investment decisions anymore. >> well, i think part of the fed's calculus is if they go sooner, they can go slower. >> right. but they haven't done that. they say that, but they haven't. >> if they go later, they have to go faster which could be more disruptive. >> they're running out of time. >> zell. >> well, they're running out of time. right now, we're debating one move, two moves. i agree with joe, this is a very, very slow pace. what we have to think about, what does this mean for the markets? i know we have a brexit date out there and things like that. there's lots of things that

still have value. the cnbs markets, single family, multifamily home, this is 6%. housing markets are doing okay in the u.s. we have the second quarter tracking in the high 2%. some people say the low 3% trajectory. the u.s. economy is doing okay. there are assets within even the high yield space. paper, packaging, 6, 7, 8%. there are many opportunities out there. brexit i think is giving bargain hunters the opportunity to do that. the fed is important but it's not the only game in town. and there are other central banks that are thinking about moving as well. i mentioned the boj earlier. i think that's important. but the ecb. everybody is singing the same tune. there may be a hike in the fed, there may be action, budget it's a very slow pace. in my space fixed income, assets i manager.

is this an area assets whose fundamentals are strong but risks are cheap and that's your investment opportunity. >> word is they might be behind the curve but everyone says, well, there's no inflation so they're not behind the curve on inflation. but you might be behind the curve in another way and that is having ammo next time we have a slowdown. if they're behind the curve in what they've got in the tank to offset any weakness, then we're due for another recession. >> or behind the curve in trying to span the asset inflation. >> even if you're inflation 12 months from now, even if they were rushing to the gates with interest rate hikes -- >>s not just interest rates, right? you can do other asset purchase programs. >> i'm with you. i don't know. i don't know. i think these people messed up a long time ago and we're living with it. thanks. >> gentlemen, thank you. when we return, the ceo of a

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welcome back to "squawk box" this morning. they say that all news is local. but now all news is social. odyssey is a social network it that reaches thousands of communities of writers and editors it it has earned more than $30 million in equity funding. evan burns is the company ceo. good morning. >> thanks for having me. >> help us understand what odyssey is. i can be a writer. i submit stuff to you you have a team of editors of algorithms that are going to make my writing better? >> more or less. it's a social media that is going to dma going to democratize the way content is created.

the idea is to give them data to give them human editors we can help them. >> you have three thought leaders here. joe is -- >> i'm going to have to write it from scratch. >> we're going to write something -- >> no. >> you're not going to write anything? >> i can dictate. can i calm you up and dictate? >> i'm sure we can figure it out. >> you have a team of editors. what do they do? >> if you submit an article, it's going in two different lines of human editing to help you tell your story. >> as a former copy editor, it's difficult to take people who have no training i can't imagine doing that job. >> the thing that's different, it's not that we're trying to make everything perfect to ap style. >> but trying to translate it into english. >> i think that's why we created

the company. it's not an idea if you don't have a background in writing, how do you show that idea. >> talk about algorithmic part of this which is you make suggestions to the editor or writer about how to make the article better and more shareable? >> yeah. more about the structure of the content. a lot of people hear algorithm and think oh, it's going to tell us what to right. it can analyze structure. it can analyze data points and it can match that with engagement over time. and it can make recommendations back to editors. does is this any better than the little squiggly lines that i get under microsoft word? do you ever have that on microsoft word where it tries to fix your grammar? >> yeah. >> it's syntax and grammar?

>> it's more than that. a lot of that comes back to like an editor. >> you're taking ideas and putting them into some sort of sense. >> you got an algorithm that could be the facebook progressive slant. that anything that you write will come out in the way that mainstream media would like it to come out. is there a progressive algorithm in there. >> we zroptsdon't have a progre algorit algorithm. >> do the authors make money? >> the way it is all through advertising, like a social media platform, right? we are building a model this is alpha testing right now. that top person that drives the most engage mpment can get proportional pay on. you're creating because you want to. there's 12,000 creators. the news is like a bargaining platform for the world. we're not trying to be a place

where everybody can write. we're trying to be a place that have many people and back grounds and perspectives. you can see one topic that you're interested in and you can see went viewpoints that surround it. not just one but the whole perspective. >> thank you, evan. i think that's fun. >> with the syntax or grammar or anything. >> trust me, i'm not considered -- >> not over there. there you're like attila the hun. >> i know. >> your life is so weird. >> thank you, i appreciate that. >> a hint of yeah, we could probably find an algorithm for that. we're working on it. >> i'm work on an algorithm for you. >> if i use -- if i do get -- you can't believe that you're going to need this. she comes up with ridiculous things. coming up, president obama

and donald trump facing off on the politics. the latest comments straight ahead as we head to break. the s&p winners and losers. is w, with new cabinets from this shop, with handles designed here, made here, shipped from here, on this plane flown by this pilot, who owns stock in this company, that builds big things and provides benefits to this woman, with new cabinets. they all have insurance crafted personally for them. not just coverage, craftsmanship. not just insured. chubb insured. thank you. ordering chinese food is a very predictable experience. i order b14. i get b14.

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welcome back to "squawk box" this morning right here on cnbc first in business worldwide. take a look at u.s. equity futures at this hour. we do have green. opening up 50 points higher. the nasdaq up higher 11 points. s&p 500 up over 3 points. we do have a developing story to tell you about in florida. it is disturbing. deputy it's are searching for a 2-year-old boy who was dragged by an alligator into the seven seas at walt disney world resort last night into the lagoon at disney's grand floridian. the boy's father tried to grab the boy but failed. disney has released a statement saying everyone here is devastated by this tragic accident. our thoughts are with the family. we are helping the family and doing everything we can to assist law enforcement."

the u.s. senate gets a closed-door briefing on the tragedy in orlando. the terror attack is raising new questions in washington about a lot of things, about gun control and isis and war on terror. tracie potts has more on the war of words between president obama and donald trump. >> we had 49 innocent americans killed on our own soil and this president can't seem to put the golf club down and come off the golf club and engage isis where we need to engage them. >> reporter: frustration spilling over in washington. president obama on banning muslims. >> where does this stop? are we going to start treating all muslim americans differently? >> he was more angry at me than the shooter. rk hillary clinton on gun control. >> people cannot board airplanes with full bottles of shampoo. but people being watched by the fbi for suspected terrorist

links can buy a gun with no questions asked. that is absurd. >> place your belongings -- >> reporter: congress is again discussing a law to place people on the no fly list in purchases guns. after years of gridlock the senate's top signals compromise. >> we're open, nobody wants terrorists to have firearms. >> reporter: but people on the no fly list should lose their right to bear arms because the government thinks, but cannot prove, that they have terrorist connection. tracie potts, nbc news, washington. right now it's time for "the executive edge" facebook's ceo mark zuckerberg answering questions on facebook live. he was asked questions by jerry seinfeld.

>> you get out of the bed, you go to the bathroom? >> oh, no, first thing i do is look at the phone. that's interesting. i do that too. what do you want to know? i usually want to know did the mets win or not. >> no that's not my thing. >> i know. i'm asking what you do. >> i look at facebook. >> zuckerberg told him that he broke his arm in a bike accident training for a triathlon. he said mobility would help the healing process. >> it wasn't good until you saw it. >> it was great. >> go on, get tickets. >> unbelievable. soon, you will be able to buy a tesla at nordstrom's. did you see how many tesla's. >> it's a porsche. >> anyway, the electric carmaker

will open a 400-square foot gallery in may. it will allow potential buyers to test drive the car right there onsite. >> okay. perk up. coffee drinkers. >> a booing story. >> a booing story. after saying coffee is say possible cause of bladder cancer. this is kind of weird. i saw it this morning, the w.h.o., world health organization, is expected to reverse its course saying that coffee is not a carcinogen. depending on how hot it is. >> hot is better or hot is worse? >> hot is worse, supposedly. i don't know. you know, these studies, and we've historically seen -- >> red meat. >> you do it in ice. we've heard that problem,

anecdotally, you get a large group of people and look in hindsig hindsight. you're either looking back at lifetime. with no cause and effect or you use animal studies, because you need generations of -- you can't -- it takes 30, 40 years to develop cancer. so you use animal studies. >> but a lot of times, with animal studies it's not the normal dose. like 10,000 times. >> it's very difficult. when we come back, we're going to take a closer look at the influence of our decisions on 0 others. a researchers could change the way we look at investment decisions. first, before we head to break, a quick check of the european market. for once this week you're

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most people would say that their tastes are driven by their own opinions. berger is a researchers at the wharton school. his new book is "invisible influence ""the hidden forces that shape our behavior. professor, thanks for being here today. >> thanks for having me. >> this is something, we all thing we have strong personalities that we make our own choices. but you're saying we're wrong on this. you've been studying this for 15 years. >> from more simple ones from which breakfast cereals, to job choices and who to marry, we make those choices. other people have a huge impact on what we do from what we buy to how we behave. >> you're talking parents,

friends, co-workers? >> even somebody on the subway. in the gym, on the treadmill can make us run faster because someone else is around. even people we don't know have an impact. >> that makes sense. the idea it's going to have a huge influence on who i choose to marry or what breakfast cereal, i have a harder time. >> take voting, we look around to figure out what are other people doing. people are more likely to turn out to vote if their spouse is turning out to vote. they see signs from one party to another that help you behave. >> that suggests that we're weak minded people in this fear of nothingness that we're going to get swayed like a school of fish? >> certainly influence can be seen that way. a lot of times influence helps us. you couldn't look at restaurant reviews or imagining where to go on vacation. that can be tougher. others offer short cut that's help us make better answer

faster decisions. >> i was going to ask, do you think we're exacerbating our own biases, though? talking about this in theterms w one newspaper. and the result, we're influenced even more so, talking about the political debate it's even harder to get to the middle. >> it's an echo chamber of sorts. we expose ourselves to information that we're interested in. and that reinforces our present views and causes us to think we're right. one important thing about thinking about how to vote, how to get to the right answer at the end. >> what's the answer to that? >> we've all been in group meetings where everyone ends up one way, it's important to avoid group think. how can we set up a designated

discenter. a person whose job it is to days agree in the group. >> we have one of those. >> we should go to jail for that. >> for what? >> for being a denier. the first amendment doesn't cover it it. group think is something to definitely be avoided. everybody says, well, they tell me it's true, so it must be. you use the term "denier." >> what's important it frees people up to share their own individual opinions. the fought right or wrong. it's a matter of discussion. >> one way, anything in the past that's ever been discovered has been, a lot of times, it's one person. that ends up making the entire consensus which advances. >> gentlemen, one of the things we say in a negotiation, you do well to mimic the person you're trying to impress. if you're there for a job

interview to negotiate a higher salary. it sounds simplistic but almost aping what the other person is doing? >> subtly, so. if the other person is sitting there with their arms crossed, you cross your arms. sitting there resting their hands on their chin, you do the same. it brings you five times likely to negotiate an outcome. a waiter, a cobb salad, dressing on the side. >> you get 70% higher tips. the idea is when someone mimics us, we feel more like behinded. >> we are weak minded. >> you find someone that went to the same high school as you, now you find yourself as similar. these simple tips can help you accelerate general actions. >> jonah, thank you. >> appreciate it. what we return, the potential fallout of a brexit. robert frank, mr. real estate himself has that story, right

after the break. how's the new project going?

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welcome back to "squawk box." big banks including citi and goldman sachs bringing in traders to work through the night. they were told if the vote was to leave the eu the bank would have to have teams of people thrown on what that means. the bank of england would be staffed overnight with senior

policy makers on call overnight. you start to think about the september weekend in 2008 a little bit. i don't think it should be like that, but -- also there has been a lot of time to figure out what comes next. the idea you would have to stay up all night to figure it out -- >> things have been going so nice in the eu. we talked zero interest rates, negative interest rates. swimmingly. we've talked about the potential effects of a brexit on the economies of the u.k. and the eu. one guy said it will be the end of western civilization if there is a brexit. no hyperbole. there could be ripple effects in london real estate. robert frank joins us with more. london will be where it's at, i'm telling you. >> yeah. >> whether this happens or not. >> london is already the billionaire-millionaire capital

of the world. foreigners already own more than $120 billion worth of real estate in landon. what's going to happen to all that investment and new investment with a brexit vote. some say the uncertainty is already causing a slowdown with sales down in london 20% to 30% from the peak of 2014. a lot of it because of new regulations on money laundering. a leave vote could create a one-time london property boom. if the pound weakens london real estate becomes cheaper for dollar-based buyers and agents say buyers from the middle east, asia and other countries are already, quote, ready to pounce if there is a currency discount. the last two times the pound fell, in '92 and in 2008 with the financial crisis, property sales actually increased because of that implied discount on currency. prices in central london have more than doubled over the past six years. what do you get for your

millions in london right now? knight frank is listing this 1.5 million pound one-bedroom in st. james. 863 square feet. a little bigger? 6,200 square foot townhouse in five floors in kensing had been for ten pounds. if the pound falls, that's a 3 million-pound discount on that $18 million property in kensington. it's meaningful. you can see why buyers are waiting for this. >> i need a 3 million pound discount on a 3 million pound apartment and then i need a mortgage where they pay me? if the currency falls that much we're all in trouble at that point. >> i see what you mean. >> it's still significant. >> you got any money? maybe we should -- one-bedroom? >> i agree with you. i lived in london in the mid '90s. if i had only bought property then. i mean, it's incredible.

new york city too. london is 20% more expensive than new york city. >> let's go in on the one-bedroom. >> 800 square feet. we each get 200 square feet of it. >> we're not going at the same time. >> a mini time share. >> that would work. i would be into that. >> in st. james. >> it's posh! >> it is! that's not bad. cheaper than this place. >> yeah. >> all right. >> thanks to robert frank. stick around. still could come, someone who may have some suggestions about where in -- >> he already has a nice apartment. >> willfried grew up in downton abbey. has a report on the similarities and sentiment driving a push for a brexit overseas and how it's similar to the rise of donald trump here at home. and really that's not the only two places where we are seeing a -- >> interesting politics -- >> -- pushback on some of the

current things going on. before we head to break. the dallas cowboys could be without one of their star running backs for the start of the season due to a falling cellphone. be careful out there. darren mcfadden, the team's leader rusher, broke his elbow while trying not to drop his new iphone. he fell on his elbow, cracking that rather than his phone. does anyone, whenever they get near water, just panic? i panic, whether it's a toilet or swimming pool. >> you have your phone at the toilet? >> i try not to but it's replaced the newspapers, hasn't it? it's not a good idea, though. just imagine if you did. >> my husband dropped his in the bay. >> it's gone! >> samsung phones now, waterproof. >> right. >> but i don't have a samsung. >> i know you don't. >> okay. just throwing it out there. >> somebody just whispered,

mcfadden signed a multi-million dollar deal, saved a $200 phone. it's a natural impulse, to just grab for it. when we return on "squawk box," bids are due next month for the sale of embattled media company gawker. ceo nick denton joins us to talk about the sale and a new loan to keep gawker operational during bankruptcy.

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. decision day for the fed. a week may jobs report likely to keep the fed on hold this time around, but will janet yellen clue the markets in on when a rate hike could actually happen? what you need to watch ahead of this afternoon's rate decision. that's straight ahead. the gun control fight and how to beat isis front and center for the presidential candidates. >> people cannot board airplanes

with full bottles of shampoo. but people being watched by the fbi for suspected terrorist links can buy a gun with no questions asked. that is absurd! >> frustrations spilling over in washington. >> we had 49 innocent americans killed on our own soil, and this president can't seem to put the golf club down and come off the golf course and engage isis. >> holman jenkins is our special guest. embattled founder and ceo of gawker nick denton, his bankrupt site battling against hulk hogan and now could be sued over an article about donald trump's hair. he'll join us live. the second hour of "squawk box" begins right now. >> ♪ it's the final countdown >> live from the beating heart of business, new york city, this is "squawk box."

♪ the final countdown welcome back to "squawk box." on cnbc, first in business worldwide. i'm joe kernen, along with rebecca quick and andrew ross sorkin. we have a clock. investors in global markets awaiting this afternoon's fed decision. that's what it is, even though there is zero chance supposedly in the futures market. maybe -- hope springs eternal. maybe they will surprise us. maybe they want to get there. maybe they want to do a quarter point. when do we put the brexit clock up? >> that's a good one. >> it's still eight days away. cnbc will have full coverage of the announcement. will she leave out a word, add a word, change a word? what about her body language? what about her eyebrow movements? what could it indicate about a future rate increase at some point in our lifetimes if it ever happens. along with economic predictions.

followed by janet yellen's news conference. will steve liesman get a question in? is he going. >> i'm sure he is. >> he is already there. >> i bet he does. >> send him some. the future at this hour are up, as becky said earlier, for once. because it hasn't been great so far. and it's been mostly brexit and, of course, terror and everything else. oil prices have also maybe been part of the reason. they were supposed to be on their way to 60 after they hit 50, but instead they're waffling between -- in the 47, 48 area. even brent was below 50 now. headlines to tell you about. pair of economic reports before that fed decision. the may producer price index comes out and then the may industrial production numbers expected to decline on continued weakness in the mining sector. apple may be considering creating in-how is content to spur higher us of paid services.

the nikkei newspaper says there is no limit to what the company is willing to do with music. tv and streaming tv shows. spotify might be considering doing video as well. they've been talking about that more and more. and apple is now funding a tv show about the sale of apps. it's like a comedy or something. >> i'll be rolling in the aisles. how funny is that when you're buying an app and something crazy happens. who thought that up? >> silicon valley. that is hilarious. the state department says it can't address whether boeing has secured a license to sell commercial aircraft in iran. on tuesday. tehran said it reached a deal with boeing to supply jetliners as part of the international agreement easing sanctions. it's only on a case by case basis. the terror attack in orlando that killed 49 people at the

pulse nightclub. authorities say the wife of the killer may have known and maybe tried to talk her husband out of the attack. noor mateen said she was with her husband when he purchased ammunition and a holster and that she once drove mateen to the nightclub so that he could scope it out. authorities say that they're considering filing criminal charges against the wife for not alerting law enforcement about what she knew. developing story this morning. deputies in florida are searching for a child dragged into the water near a walt disney resort. the 2-year-old boy was dragged into a seven seas lagoon. the family of five vacationing from nebraska. the child and his father were wading in about a foot of water when the alligator attacked. the boy's father tried to grab the child but failed. witnesses say the gator was four

to seven feet long. at least 50 people including two marine units are continuing the search. disney putting out a statement saying everyone here is devastated by this tragic accident. thoughts are with the family. we're helping the family and doing everything we can to assist law enforcement. what a disturbing story. back to markets. bed bath and beyond is buying one kings lane the online furnishing site valued at nearly a billion dollars two years ago. reports say the flash sale was sold at a fraction of that price and bed, bath and beyond says the deal was in its words not material. metlife is waiving the retirement rule for the 64-year-old. they're allowing him to stay past his next birthday. steve has been the ceo since 2011 and oversaw the successful designation by the government as

a systemically important company. shares of metlife are up about 8% during his tenure at the company. and 65-year-old retirement rules always seemed a little stupid to me anyway. you want experienced people there. >> you do. dan rather on "today" later. looking forward to it. someone said -- he's 83. he says, are you kidding me in 83? no way. once again, it's day two of the fed meeting. with the decision expected at 2:00 p.m. followed by a janet yellen news conference that comes at 2:30 p.m. steve liesman joins us right now from washington. steve, we've already been trying to think of questions, but i'm sure you have a bunch of your own. >> i do. maybe i'll share those in a minute. becky, i think this turns out to be an important meeting for investors and many on the street. especially if you're a short-term trader and you want to go to beach and leave your smartphone at home this summer, because the fed will be on vacation for the rest of the summer. that's what morgan stanley suggestion saying not only does

the looming risk of breblt keep the fed on hold in june but the conditions necessary to support any summer hike have faded. here are keys i'll be watching. i expect janet yellen to be cautious on rates but optimistic on the economy. she has had the weak jobs reports. brexit risk. negative global rates. better second-quarter growth including better retail sales. then the question is whether the fed's own forecasts drop below it 2% for 2017. more and more the fed is talking about lower long-term growth prospects for the u.s. finally, does the rate outlook come down once again. i want to show you what's happened to the fed's own forecast for rate hikes over the past several projections that have come out. each one of those is a quarter. you can see here, for 2016 we're at 0.9%. think of it as two or three hikes have been baked out of the

fed's own forecast. 2017. four hikes have come out. 2018. call it two more or less. so that's been a lot of actual easing compared to where the fed thought it was going to be. the question is whether more hikes vanish today. once again, the fed would then come down to where the market is on rates. does it hold on to the chance of two hikes this year or drop to one? if that's the case then, guys, have a very good summer for the fed. becky. steve, thank you very much. let's talk about the challenges and uncertainty dominating the market. joining us to talk about it larry adam chief investment officer for the america and chief investment strategist for deutsche bank. jonathan wells, portfolio manager. good morning to both of you. we talk about brexit, we talk about what the fed is going to do. we kind of think -- grand expectation is nothing on the fed and brexit doesn't happen. i think. do you have a different view?

>> so i don't think anything is going to happen in terms of rate hikes. the more important thing, i think the fed retreats from their hawkish rhetoric in may. there have been a lot of concerns around the world. china, slower global growth. and inflation expectations as steve mentioned are a big exclamation point in that concerned environment. given all that's going on i don't think the fed can be hawkish. i think they have to reformulate their guidance and be more cautious. >> if they do that, the market does what? or is that baked in already? >> i don't think so. i think the fed did have some hawkish guidance in the month of may that did kind of reprice some markets. if they were to adopt a more cautious risk management approach, that's your normal -- it's good for risk assets. probably good for emerging markets. they've had a strong response to the federal reserve. that's been beaten up. you could see hope there. keeps interest rates low. we know what that does for the

rest of the market. >> you have to look at what's priced into the market. a couple weeks ago when you saw the vix below 14, we went long volatility expecting that there would be a lot of uncertainty with the brexit, with what the fed is going to do. >> so far that has not happened? >> the vix? it's gone up 50%. >> we're still remarkably low for where we should be if you thought the world was on the edge of -- you know. >> i don't necessarily agree. we've put contingent trades on. when the vix falls below 14 we expect it to rally. we take it off at 20. just took it off yesterday. when it gets above 24, 25 we've gone short volatility. historically those have been good guide posts to where the volatility has moved to extreme levels om to revert back. >> do you guys have a view on brexit? any chance it does happen? if so, do you plan to stay up all night the way jamie diamond and the guys in england say they are? >> we're a global bank, so i

will be up all night covering around the world. i really don't have an opinion on it. i think it's too close to call. >> if you're sitting on cash right now. are you waiting? do you want to wait for the next week and do nothing? do you think there is opportunity here we don't know about? >> i think it's expensive to wait. that's your normal thing. it's still true in this environment. two places to put cash to work is the u.s. corporate market. corporate spreads are wide and priced for more relecession lik outcomes. and emerging markets. they're quite cheap. they've underperformed for a long time. if you get a combination of an accommodative federal reserve. stabilization in china, you are seeing actual turns in the economic data and brazil and russia. that's positive for those asset classes. we would put that money to work. >> expensive unless the whole world -- >> if you look at the equity market, i would stay in cash.

i think you'll see a pull-back. historically -- i would keep the powder dry. >> you think the brexit issue is going to -- do it this way. say actually nothing happens next week. does the market rally off of that? or do they say, that's what we expected, so this is a big nothing? what happens? >> i think anything -- i think the vote is so close that there is still going to be uncertainty. whether it's leave or it's stay, the damage has been done. there is going to continue to be political recommeamifications i europe, particularly in the u.k. you also have the election. it's an open election. historically open elections lead to more volatility and a pretty much flat market. if you look at valuations, they're high as i said. the fed, a lot of uncertainty. i still think they go before september one time. that's going to lead to some volatility. >> gentlemen, we appreciate it. let's see what happens in the next week.

thanks. coming up, the similarities and stark differences of a brexit and donald trump. a look at the startover philosophies on both sides of the pond with wilfred frost. media ceo nick denton is our guest. tokyo-style ramen noodles. when you cook with incredible ingredients... you make incredible meals. fresh ingredients, step-by-step recipies, delivered to your door for less than nine dollars a meal.

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this morning. take a look at the futures. see how things are setting up for the day. dow looks to open higher, 41 points. nasdaq up nine points and s&p 500 looking to open three points higher. nationalism, populism and blonde hair. some of the factors used to compare donald trump to the rise of brexit. wilfred frost breaks it down with nearly one week to go in the referendum vote. this is getter hairier and hairier, the vote. >> hats off to you given the discussion we're about to have. trump versus brexit. been lots of comparisons not just because of the crazy blonde hair of the donald and boris. number one. both have a straight-talking nature and celebrity status that endears them to voters far more than other politicians enjoy, second their supporters tend to be older, also part of smaller

businesses or self-employed. third, there is a definite connection on the issue of immigration. albeit with some important nuanced differences. i would argue some crucial differences far outweigh the similarities. first up, free trade. trump opposes it. he advocates protectionist measures and brexit seek it as much as the main camp does just in a different way. difference two. donald trump's rise stems from an annoyance with the elected washington political insiders. brexit is about unelected brussels outsiders. brexit is about british sovereignty. american sovereignty is not in doubt whether under donald trump or clinton. trump's rise is new and recent. u.k. stems from before the first incarnation in 1951. there was an in-out referendum in 1975 delivered by the labor

government stemming from the longevity of the european debate in the u.k. in my eyes no conclusions to draw from next week's u.k. vote for the u.s. election. >> a couple things. you said that the pro-exit brexit voters are in favor of free trade but just a different way. what do you mean? >> if you actually boil down what this debate is about in the u.k. it's kind of a similar thing. both sides, exit and remain, want to remain the free trade parts of britain in the eu but don't want to be drawn into more political and fiscal integration. the exit camps say we need to leave in full and renegotiate trade agreements. the question is do you believe you can once exiting? osborne and cameron want us to stop being further integrated if the currency needs more political and fiscal

integration. >> donald trump will say the same thing. he wants to maintain free trade but he doesn't think what we have right now is free trade. >> mitt romney, a couple years ago, talked about some of the same things with china because china practices mercantilism did the. we look like pikers compared to the way they flood -- we're already in a trade war with china. we're not starting a trade war with china. the other thing you said that is shocking to me. you look at the american voter and what they feel about the washington establishment and elected officials. think if they weren't, like you said, elected. >> right. >> and they weren't even in the united states. can you imagine? we would be throwing tea into the boston harbor again. if they were in brussels and not elected and telling us what to do, i can't even imagine. >> that's why i think there is a crucial difference. this is a vote about british sovereignty as opposed to just an issue of annoyance with the

political establishment. there is an annoyance with the political establishment in the u.k. if you rewind one year to the general election, fa raj's party got 12% of the vote. it didn't get down to the final two between who will be prime minister. there is an aspect of that and certainly the momentum has grown in the last couple years. >> there was another one recently. the far right guy missed by that much. it just happened. a month or two ago? >> in the u.k.? >> it was from france. the opposition pulled their candidate, which made it a two-person race. >> the national front did pretty well. >> the sentiment has been rising. >> we didn't get to a point where it's a choice of two people one of whom clearly is a rebel, clearly represents anti-political establishment. and i think the vote to leave the european union has aspects of that in it but isn't the same thing. >> you talk about how this has been such a long-running debate in the eu going back to the

early '50s for britain. does that mean, if if they vote to stay in, the debate sticks around? >> i think it sticks around but you've delivered a referendum. i said there has been a ref referredum in 75. if there is a vote to remain those who call to leave can't continue to call for one every day. there will always be issues there, but you're not going to get a vote once a year, once a week. as soon as we get through the campaign, if it's a vote to remain, we'll see a bit more calm afterwards. >> you're much more comfortable with hell of a long time than a bloody long time? >> we can't say bloody. >> i can in this country. it's cable. you can say whatever the -- heck you want. >> there we go. that slipped out. my apologies. >> only because we had a conversation off-camera two days ago about -- >> other words. >> what's the other word?

>> we didn't think we were bad. apparently we are. >> say it. >> boll oked? >> you said it. >> apparently i said it and it's a very bad word. >> you said it for me. we gotta go. we have to get to a commercial break and pay some bills. how much would you pay to have lunch with the oracle of omaha? how about a cool $3 million. it's all for charity. details after the break.

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homeless, poor or struggling with substance abuse. it's an action we follow every year. and this is the highest bid that we have ever seen for it. still to come in the next half-hour. gawker founder and ceo nick denton. up next, terror, gun control, race for the white house and much more. the "wall street journal's" holman jenkins joins us to discuss those topics and more. all front and center as we head to the national conventions. dow looking to open 40 points higher. back in a moment. i was working in the yard, my chest started hurting

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welcome back to "squawk box." among the stories front and center at this hour. pair of economic reports before the fed decision. the may producer price index out at 8:30 eastern time. at 9:15 may industrial production not expected to decline on continued weakness in the mining sector. soon you'll be able to buy a tesla at nordstrom's. the electric car maker will open

up a gallery at the nordstrom in groves in los angeles. it will display the model s in june. you can test drive the car on site. another survey on next week's brexit vote on thursday. new polling data showing that the remains have a 1% lead over the leaves and the betting line on the move, the latest odds 62% in favor of the u.k. staying in the eu, which is a recovery a bit from the 55% reported yesterday. but there is a margin of error with all of this. a developing story in florida that we have been telling you about this morning. deputies are searching for a 2-year-old boy dragged by an alligator into the seven seas lagoon near the grand floridian resort last night. the family of five was vacationing from nebraska. the child and his father were wading in just a foot of water, foot of water, when the alligator attacked. the boy's father tried to grab

the child but was unable to do that. officials say they'll continue searching until they reach a resolution. disney reached a statement saying everyone here is devastated by this tragic accident. our thoughts are with the family and we're helping the family and doing everything we can to assist law enforcement. they said the alligator is somewhere between four and seven feet. from estimates. it's a -- you've been to that actual -- >> yeah. i mean, it's where the grand floridian, the polynesian are all right on that, along with the contemporary. >> man-made. >> look at florida. every golf course you have alligators that wind up in. i don't think they stock the alligators in these things. they wind up there. >> right. south carolina. >> yeah. alligators as well. >> i've never seen an alligator in that lake. >> i have seen them a lot, as you say, on golf courses.

normally they sort of are afraid of -- >> afraid of people. >> and stay away. that's the shocking things. they said there are signs for no swimming. if you're there, you see people wading offshore all the time. media news. sumner redstone making his first public appearance in a year after months of legal drama. the 93-year-old media mogul and his daughter visited the paramount pictures hollywood lot to meet with the studio head and he visited cbs west coast headquarters. this coming as redstone is in the legal battle with viacom filip dauman who claims he doesn't have the mental capacity to make decisions about the future of his media empire. the orlando shooting massacre raising many questions about how to combat terror. "wall street journal" columnist and editorial writing holman jenkins argues that big data should be used to prevent further attacks. joining us now to talk more about that and more is holman

jenkins. there are times when i read you also, and i am just nodding. in general holman, i think the only place i ever read the truth are in the "wall street journal" editorial pages. >> we like to think so, yes. >> you can read diametrically opposed things in one leading newspaper and other leading newspaper that are mutually exclusive as to the thought process. i don't know how it works. i guess there is no objective truth in the world anymore. what you say today is interesting. and that is, if we use big data, you would have known this guy -- if we use it effectively you would have known that he bought it. to sit here again talking about -- denying weapons, any weapon from a whole group of people that have no priors is -- they don't even in the democratic votes for that at this point. or at least go ahead and do it if you can. but they probably couldn't, right? >> yeah. this is the third guy who committed a terrorist act on our soil who the fbi was already aware of. big data, you get all kinds of net fications on your desk and

phone all day long about everything. why didn't the fbi know when this guy shows up and passes a federal background check for a weapon? >> why don't they? >> partly technology but a lot of it is privacy and the fear of big government and all of that. there is a way to do this where you protect people's rights. this is computers raking through information. not people raking through information. >> that's a great argument. i have been going back and forth trying to figure this out. anybody who is questioned by the fbi on any account to then be put on a list where they're flagged for anything they do down the road doesn't seem right but this seems like a logical steppe th step that you want someone to be notified if they're buying guns. >> especially in the case of omar mateen who was licensed and vetted as a security guard. he belongs to a class that already sacrifices some of its privacy in order to get a job. >> what about magazine limits or -- even no more long guns that are semi automatic, at

least with 50-bullet magazines? >> i don't think it makes much difference, you know. you can do a lot of damage with a semi automatic handgun. in some ways it's a more efficient weapon because it's hard to grab out of your hands. i don't think that's the solution. i think the solution is to find the people who are a danger and focus on them and use all of the data which is out there. this information all exists. it's a question of having access to it and using it. >> well, but what is the -- i'm just -- this is what the other side asks. what is the -- what's the rationale for a military-style weapon with 50 rounds in the magazine for hunting deer or for whatever? or is it just the second amendment is so all-encompassing that there can't even be, you know, little -- common sense as the president always says, common-sense measures for how to -- >> what does matter? you don't have the votes. obama doesn't have the votes to take the weapons away. they're weapons like any other. >> we don't allow you to have a

rocket launcher. >> a rocket launcher can take down a plane or blow up a car. >> but why are we deciding that one is more important than the other? by the logic that a magazine with 50 bullets -- >> you can't have an automatic weapon. >> we can't have a fully automatic weapon. >> we did have a law that prevented the ar-15 from being in the market. >> it did make any difference? it's a cosmetic thing. it appeals to people who want to march around and play soldier in their back yard and also appeals to people who want to commit mass murder. they have other ways to commit mass murder. i don't have a problem with banning automatic weapons if you have the votes to do it. >> are you calling for a national registry? >> of gun owners? >> because that's something the nra is against. >> they're definitely against that. i think the way to start is to take people of interest and give yourself access to all the information about them. including whether they buy a

gun. >> don't preclude someone on -- on a no-flight list. don't preclude them from buying weapons? how -- >> due process -- >> is it taking liberties away from not letting them fly. >> there is a due process issue when you punish job without putting them before a judge or jury. there is nothing wrong with giving the fbi the information especially if the information is delivered through a means where it's protected from abuse. >> where do you stand on putting a delay on it? meaning i walk into a gun store and can't walk out with a gun right there? >> states can regulate it. it makes sense. there is no reason somebody urgently needs a gun unless it's for somebody who is a threat. a lot of women would like a gun to protect themselves from their ex-boy friends. it would probably be good if they had that opportunity. >> we'll talk quickly about the election. i just, in trying to summarize my thinking on -- as i said, i -- you know, i read holman

jenkins all the time and figure, yeah, yeah, yeah. with this, i guess to summarize it, the devil you know is better than the something that you don't know? because there are two kinds of people in the world right now, i am told. there is the anybody but clinton people, and there's the anybody but trump people. it's a binary decision. >> i'm not sure it is yet. we still have the republican convention coming up. >> okay. so after the republican convention. when you fully know that donald trump is the indisputable nominee, at that point will you take action that could -- that could actually elect hillary or make it easier to elect hillary? >> it depends what trump has shown me in the meantime. i like the idea of a guy who wants to go to washington and change taxes and other things. a lot of what he says i don't like. the question is can he deliver anything? there are questions of personality, of range and depth. the thing about the orlando speech was lame. all he wanted to do was relive

his greatest hit on keeping muslims out of america. a lot of people expected more from him then. >> they think -- both sides are playing their political cards. one thing he said was that reagan was great because he said you can get a lot done if no one cares who gets credit. >> which doesn't sound like trump, does it? >> that seems like a personality to me. >> exactly. >> i'm not sure anybody really knows what lurks in the -- i don't have a -- a magnifying glass looking into somebody's soul but i do know what hillary clinton wants to do in terms of a third obama term. i know what trump wants to do with corporate taxes and what he wants to do with regulations and i know some of the things that hillary clinton has said about how she's going to do day care and pay for other things and health -- knowing those things, that's enough for some people to even take a chance on a complete unknown. >> possibly for me too. thank god we don't have to decide until november. trump can show us a lot more

between now and then. >> you've been critical of trump the whole town. >> he said he's not spending his money like he promised to. he has not broadened his appeal like he promised. he's not toned down his rheto c rhetoric. does he really want to be president? i ask myself. >> holman. off camera i said, so, any of the other 16 would have been more palatable. there are none of them that you'd prefer -- >> i don't remember all 16 but the ones i remember i think i would have preferred over her. >> there is something so outlier about donald trump that even any of the other 16 would have been okay to taken on hillary but no him. that's a big statement. >> i'm not making that statement. trump has to do better than he has done. >> in the notes i didn't think we'd get to this conclusion. but hopefully you'll come back. instead of looking at that little -- what's that called? a dot picture of people that the -- yeah.

it's great to see you live. >> thanks. gawker. i love when nick denton comes in. i love when you interview him too. >> you get to interview him too, you know. >> media company is on the auction block. now facing a new lawsuit over a story on donald trump's hair. gawker founder nick denton joins us next. as we head to break, here is a check on the futures. hey, honey?

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welcome back to "squawk box" this morning. gawker media is on the auc block, the embattled media company getting a $22 million life line after filing for bankruptcy and putting all seven of its brands and other assets up for sale. gawker facing significant financial pressure from the legal fight with hulk hogan. that battle was bank rolled by silicon valley billionaire -- i say it was. nick denton, the founder of gawker media, we're thrilled to have you. let's understand the state of play. first of all, when you look at what's happened given the bankruptcy filing, do you say that peter thiel won? >> i think he's only won this particular battle. but there is a legal process

that's under way. there is an appeal against the hogan judgment. >> you look at the gawker media empire that you created, and do you say this is the end? >> no. this is the end of gawker media as an independent company. we prided our independence very much. but we have a provisional sale in place to zif davis. it will give the brands and the people and the jobs a good home. and we continue to do the journalism that we do, and we continue to take advertising. it's business as usual. >> it's not change the business in the past two or three weeks? >> no. we've gotten into other -- >> we teased it before. about donald trump's hair. >> that's right. >> what is that about? >> this is the same -- >> same lawyer. peter thiel's lawyer. it's a letter, not a lawsuit. but it's a complaint on behalf of the hair restoration expert who is actually in donald trump's building. >> what about it? i wont to know because i -- i had been accused for so long of

having a wig, i would like to sue. >> if yours is a wig it's a very good one. >> thank you. it's not dyed either. i'm ready to sue. i have seen -- >> this is a guy who was accused of potentially making a hair weave. the question was does donald trump have a hair weave. his main shop is set up at trump towers. >> it's a speculative investigation into the connections between -- >> whether there was or whether it's a weave. what's a weave. how does a weave work, andrew? >> i don't know how it works. >> explain this so we understand. the state of play on the suit and the appeal itself. because what put this whole company in jeopardy is the $140 million payment, right? >> yeah. it's -- we're up to date with our bills. we're a functioning company. we have this one $140 million judgment. it's in a case in which the federal courts and the appeals court has already made its

determination. >> the expectation, though, is that that number will go down. to what we don't know. the question is how long does it play out in terms of how do you see the permutations of the case playing out? >> i think it goes forward to appeal. probably in about nine months to a year. and we expect the decision by the florida state court to be reversed or significantly reduced. >> part of the problem, the reason you had to go into bankruptcy at this early date is because the terms imposed on this would have been allowed hulk hogan to start takinglen ls on some of gawker's company? >> the way it works as part of the bankruptcy, sale process, we get a stay on the decision. and so it means we can pursue the appeal and mean while we'll sell the company in the next two to three months. and i think get a decent valuation for it. maximize value for all our stakeholders, preserve the jobs

and move on. >> is the $90 million zif davis has bid a decent valuation? >> it's depressed but i think given the fact that we took editorial risks. our whole proposition is based on doing the stories that other people sometimes, you know, won't touch for whatever reason. and there are some risks involved in that. we happened to alienate a particularly powerful billionaire. on balance i'm kind of glad with the choices we've made. >> so there is talk that you might to try to file an interference case against peter thiel. is that something you plan to do? >> i can't talk about any plans like that. anything we do will be done solely in order to maximize the value of the estate. >> do you think there is a case to be made -- and you've been critical of the fact that peter thiel has been behind this, that there should either be a change in the law or a change in the way this particular case and other cases like this are approached? >> i think -- let me say this.

i think it's healthy that there is a debate about these matters. i think it's healthy that peter thiel has come in for a degree of ridicule for pursuing a ten-year vendetta over a bunch of negative critical coverage or mocking coverage. as for how the legal process plays out, i am not -- >> do you think financial backers of cases should be disclosed in every instance? the reason i ask is there are lots of situations, whether the innocence project or other not for profit organizations who try to help people, whether they're trying to defend themselves or whether they're trying to bring cases. >> i don't see why they should have a problem beingdisclosed. i think most don't have a problem. >> traditionally when they are disclosed they're not disclosed to a jury. judges actually say that should be an irrelevant metric. >> i think i have seen surveys which show the judges themselves believe they should know who the

backer is of a case. generally i am a believer in transparency and openness and i think that, you know, all people's motives should be open to examination and scrutiny and criticism and sometimes mockery. >> the rumor mill says, if you sell the gawker empire, if you will, that you might try to buy back gawker.com itself and continue to publish it as a denton production. >> gawker.com is a unique publication. it is driven news coverage on a whole range of topics from hillary clinton's emails through to donald trump's hair. and so if an acquirer doesn't value it as much as, say, i or other investors would, i hope there is a chance for gawker.com to live on in another way. >> would you do that through personal funds or through teaming up with another investor. >> it's radically premature. our focus right now is to sell the company at the best value possible to the best acquirer. i think it's a combination of gawker media's, gizmodo, live

hacker. with zif davis it would be a powerful brand, particularly in the video game market. and beyond that we'll see. >> what is nick denton's financial world look like now? how do you make out when this is all over? >> it depends very much on how the appeal goes. i will have a stake in a lawsuit. a -- if hulk hogan -- if the verdict stands, then i won't make anything, nor will any of the shareholders of gawker media. if the appeals court decides to overturn the -- overturn the decision as we expect, then i think we'll do fine. >> nick, just in terms of of the bankruptcy protecting gawker, it doesn't protect you personally and you are personally liable for part of this. i think there is another bankruptcy hearing today to determine whether you will be shielded by this as well. is that correct? >> that's right. >> how does that play out? these things may shield people

for some time, but then i guess there is a point where it does get kind of washed away. >> it's kind of -- it's unprecedented, really, for a publisher to be held personally liable for a story that was put out that actually i never saw. the -- we'll see. it will play out. it's kind of a convoluted process. ultimately in nine months or 12 months' time when the appeals court returns to this matter, i believe that they'll make the same decision that the federal court did before, the appeals court did before and the jury verdict in florida will be seen to be an aberration. >> if you look back at the last 14 years, you had built this empire that some people thought would be the next condé nast. how do you feel about it now? you said you would do it again in terms of the decision on the hulk hogan. >> our whole proposition has been to write the stories that are actually suggested, between the lines in newspapers or

alluded to on tv. so we go there. >> right. >> with that comes -- it's a lot of fun. it draws a huge audience. you know, we get five to six million people each weekday coming to our seven properties. and the downside is that, you know, occasionally you'll annoy a silicon valley billionaire and maybe you'll annoy him enough to have him come after you. >> have you talked to him or any of his people? >> i'm not going to talk about that. >> sounds like there is something there. appreciate it. jeff gundlach's warning to investors. the fed decision and economic outlook starts here on cnbc at 2:00 p.m. eastern time. "squawk box" will be right back. ♪ my mom loves giving me advice. she even gives me advice...

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what's recommended for me. x1 makes it easy to find what you love. call or go online and switch to x1. only with xfinity. double line capital ceo jeff gundlach did not hold back at his latest presentation on the markets and economy. saying central banks are losing control, comparing them to republican establishment and donald trump. and says the fed is confused and that confusion is spilling into investor psychology. saying also that a summer selloff is coming and will be triggered in part by rhetoric around donald trump's possible election win. he sees this as a buying opportunity. on brexit. double-line ceo believes stay will prevail but warned a leave vote could have ripple effects

on the euro zone and be the mark of the beginning of what he calls the end. when we come back a group trying to enlist republicans to support hillary clinton. greg snyder, the chairman of republicans for hillary joins us. he says a trump presidency will lead us -- he says this -- to world war iii. later, dan rather will be our special guest. stick around. "squawk box" will be right back. make healthcare more personal with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers to collaborate with the patients they serve. that's why over 90% of the top 25 global pharmaceutical companies are turning to cognizant. our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way clinical research sites collaborate with pharmaceutical companies, and enhancing patient engagement

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the calm before the fed. it's decision day for janet yellen and the brexit risk rising as we get closer to next week's stay or go vote. hedge fund heavyweight bruce richards opens up his market playbook. terror and the race for the white house. hillary clinton, president obama and donald trump trading nasty jabs over national security, guns and immigration. legendary broadcaster dan rather is here to break down the election, news and the war on terror. buckle up. jay leno is back. >> it's about the power. >> we'll look at the classic hot rods inside the former "tonight show" host's garage and some of the celebrities behind the wheel as the final hour of "squawk box" begins right now.

>> live from the most powerful city in the world, new york, this is "squawk box." welcome back to "squawk box" here on cnbc. first in business worldwide. less than 90 minutes away from the opening bell on wall street. futures have backed off a little bit up 44 points. nasdaq is up 9. checking out europe. the markets have been strong all morning. better than 1% gains they'd had across most of europe. overnight asia and chinese stocks shaking off a high-profile rejection by the msci's key emerging markets index. the shanghai composite rose by 1.6%. among our top stories, the fed wrapping up its two-day meeting, a policy decision is expected at 2:00 p.m. eastern time today. that will be followed by janet yellen's news conference at 2:30 and of course, cnbc will have full coverage of the fed

decision and that news conference. two economic roaeports due t today. the may producer price index and at 9:15 may industrial production. the number is expected to decline on continued weakness in the mining sector. we're a little less than a week away from the brexit vote. new polling data shows that the remain camp has a 1% lead over the leave. and the betting line is on the move. latest odds are 62% in favor of the u.k. staying in the eu. that's a recovery from the 55% that was reported yesterday. political news. wait. there is the countdown you asked for. >> we do have it. did we -- we kind of stole that song too. when i sing "my country 'tis of thee" i'm talking about the united states of america. >> ♪ of thee i sing >> we took that, didn't we? >> we put our own words to it. >> this is a british thing, huh?

to me this sounds like the united states. i'm sorry. wilfred is still here. sorry, buddy. just kidding! >> let's talk american politics for a moment. some political news this morning. hillary clinton's lead over donald trump in the presidential race has narrowed since last week according to the results of the first reuters poll conducted since the orlando massacre on southbou sunday. her lead narrowed to 11 points in the day since the attack. trump doubled down on immigration. we're going to talk to the founder of the republicans for hillary pac in a couple minutes. developing story. meanwhile, in florida this morning deputies are searching for a 2-year-old boy dragged by an alligator into the seven seas lagoon near disney's grand

floridian resort. the family of five was vacationing from nebraska. the child and his father were wading in just about a foot of water when the alligator attacked. the boy's father tried to save the child, grab the child, but failed. officials say they'll continue searching until they reach a resolution. with the fed decision hours away and the brexit vote just over a week away how should investors position their portfolios? joining us is hedge fund market master bruce richards. marathon asset management ceo, co-founder and comanaging partner. marathon has $13 billion in assets under management and richards is a past speaker and member of cnbc's delivering alpha conference. bruce, great to see you. >> thank you, becky. >> let's talk about what's happening with brexit. we mentioned the countdown is on. we are just over a week away from this vote. and the markets are in a bit of turmoil as we have watched the polling swing slightly towards the leave camp, though in recent -- just in the last, most recent poll, may be coming back

from that. what are the odds? >> take the coin and flip it. it goes either way. it's too close to call. then it becomes one of risk. and when you assess risk, you have to look at many different fronts. >> risk meaning are you on the wrong side -- >> political risk. so what is the outlook from the conservative party and cameron himself if it were to go the wrong way or if the remain camp were to prevail. that's one element of risk that's presented. second risk is with the financials. you have seen the financial stocks, the banks and europe and the banks across europe down 10% in the last three business days. has a profound effect on capital flows and what it means to profitabilities of banks if the u.k. were to leave. third the markets. we think the dax goes down 10% to 12% from today's level if the leave were to happen. we think u.k. equities would also go down but rebound sharply because of the sterling collapse. we think there will be a bay for

u.k. stocks because they've -- because of how cheap the currency got. it will be on sale. >> if the dax goes down 10% to 12% on an exit vote is that a buying opportunity? >> we think you'll have to assess it but it will be a buying opportunity then. it's way too early to assess now. what that means to the s&p 500 is around 5% to 6%. what it means to high-yield bonds, 2% to 3%. it will move risk off is the point. saw it yesterday for the first time in the history. german bund ten-year notes went negative. >> you are talking about the volatility that we have seen in the last four trading sessions being magnified because you see this as a fault line that is going to shake loose a lot of different -- >> it was a week and a half, and we looked at our book, and we looked at volatility, and the vix itself was trading, u.s. vix was trading around 12, a pretty low level. a -- a historical low level for

vix. today -- yesterday. >> 20. >> 22. so we put a lot of put options on then because we didn't view the market as properly assessing brexit risk. and so it gave us an opportunity to sell out of certain longs and buy certain options to protect the book. i think a lot of other folks have woken up a little late to the risk that really represents this brexit list. it's not just the brits. what it means to rest of the eu. what will the french do? what will the swedes do? the italians? if you poll their people in their countries, we believe that they are also not in favor of the eu. it doesn't mean you open it up to a referendum like cameron has done. we think it was very ill-advised to let the people vote at a moment in time whether they should be members or not members after 50 years of work being a member of the eu. this should be decided by the legislative body, the parliament. not by a popular vote.

>> cameron did it because he was in danger of losing his party and his position. he didn't do it lightly or because he wanted to. he did it -- >> -- to put the country at risk. the u.k. treasury has come out with a report saying that u.k. gdp will contract by 6% if they were to leave. >> we've seen yields -- >> that's a lot of risk to try to, you know, position yourself politically, right? >> we have seen yields for spain and italy increase dramatically on the expectation that, if there is a breakup and they are stand alone countries, you'll value things differently. >> u.k. leaving and standa loan countri lone case. u.k. leaving, risk off. why have equity prices also moved lower? because we are moving to risk off. what will the ecb do and the bank of england? flood the system with liquidity. so the risk off will be met with

buying of those governments. so the fact that you have a selloff of portuguese, i think you mentioned, italian treasuries, but there are other countries you can also point to, are also treasuries that ecb is buying. the ecb is buying about a trillion sovereigns -- a trillion sovereigns a year and they're buying about a hundred billion corporates a year. >> what does this do to the eu economy? forget with the markets? >> it's negative for the eu economy. >> i remember -- i think it was about a year ago you came and talked to us about how you were raising funds -- maybe it was a billion dollars, maybe i am getting this wrong. >> you're right. >> it was a billion dollars. >> good memory. >> to buy some loans from financials in the -- in europe that were trying to off-load some of the loans. you said it was real estate? >> we were successful with that. bought the loans. bought them out of the banks and have taken possession of the real estate. we think one of the big

beneficiaries will be assets that are real assets. we own property as result of having bought these mpls, income producer properties. >> the brexit doesn't change your position on that. >> no. because we think we are in a really low for long rate environment that will be here for a really long time and brexit further ensures that. and that should be highly beneficial to real estate valuations given how low rates are. we don't think -- we think it hurts financial assets and specifically banks first and foremost. if you go speak to deutsche bank, which is not a u.k. bank but a european bank, or jpmorgan, which is obviously not a european bank, they have big operations in the u.k. if the u.k. were not to be a member of the eu, and realize this is a $$16.5 trillion economic block. 28 countries. there has never been a country to pull out of the eu. if that were to happen eu has

stringent laws with the financings, with the banks, that would require thousands of jobs -- >> transferring. >> going to places like paris and germany to be within the eu because u.k. would be outside the eu. >> mm-hmm. >> now, this isn't going to happen right away even if they vote to leave. if they vote to leave it's not until two to three years out. >> the market move ahead anticipating this stuff. >> and companies make contingency plans and start to have to make the adjustments in advance of the finalized date. >> let's talk about the fed decision today, which is hours away. how does that kind of play into the volatility we have seen? what do you expect to have happen? >> it's a good time to go for a nap or, if you're tired, or go for lunch. >> or nothing. >> maybe a jog, if you want to go to the gym. we'll be at our desks working away and studying the markets and studying our statements. we expect to be dovish and not a big impact. it's not expected to impact the markets today. we think there are bigger issues

at bay like brexit that are going to be more significant. but she has been focused on international affairs. things like china and brexit. >> what hasn't she been focused on? >> she cited this in her speeches post the fed meeting, five times more often than fed chairman often do. tradition international affairs. it will be front of mind for her today. >> your odds on brexit? >> 50-50. flip a coin. >> not 70 stay? >> well, we don't think the betting parlors are representative of what the people -- >> you just told andrew real estate will go up if they leave? >> i think real estate and cash flow assets will be -- remain very stable. with low financing rates that is supportive as opposed to an asset class which will decline. that's what i said. >> oh, okay. >> you get that? >> i figure if you say real estate is going up you'll switch

to my side on this whole thing. >> not u.k. homes. u.k. homes will go down -- >> here. andrew homes. >> u.s. real estate is fine. >> i thought we were buying a place in london all together? >> we might. >> did i invite you in. >> the high-end properties drop. we talked to robert frank earlier about a 3 million pound discount on an $18 million place. >> it will soften significantly from here. if thousands of bankers are relocated to other countries. >> bruce, thank you. >> my pleasure. >> i thought you needed my credit line. >> no, i do. i need your credit rating. coming up, craig schneider -- you don't want my uber rating -- breaking with the republican party and ut ping money to work against donald trump. he joins us next for more on why he founded the republicans for hillary pac. later we'll talk politics with iconic newsman dan rather. squawk returns in a moment. olay regenerist renews from within...

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we can't gamble everything on donald trump. >> stupid, stupid people.

>> the choice to keep our children safe is clear. proudly paid for by republicans for hillary. >> and that ad that you just saw is courtesy of the newly formed political action committee republicans for hillary. joining us long-time republican craig snyder, founder and chair of the pac. a lot of people, craig, i guess they -- a lot of republicans, establishment republicans, see it as a lesser of two evils type election. but most of them still come down, when it comes down to it, on that hillary, based on republican principles, is the greater of the two evils. you do not. why? >> well, i think the fundamental job that a president has is as commander in chief. look, despite all the political rhetoric you hear in every presidential campaign from both parties, presidents of the united states don't actually run our economy. they don't actually run our civil society. the one thing that they really do have a lot of unilateral

power over is war and peace. and i think that's the task that has to be met first before you can go on to even consider any other issues. when it comes to donald trump he is -- >> he has rhetoric. we don't know. maybe you can look into a man's soul. we do have hillary clinton's record as secretary of state. start with libya, pulling out of iraq and afghanistan too quickly, which helped to spawn isis. not backing the syrian rebels -- not -- when there was a possibility of doing that. not crossing a red line. the russian reset. and then finally, top it off with the iran nuclear deal. you have conceded that her domestic policies are awful in your eyes. i have given you a list of her foreign policy accomplishments. you know from listening and looking at donald trump that he would be worse? >> yeah, i do. first of all, there are the things he said as incoherent as they are, that are simply outside the mainstream of the fundamental consensus that's

existed in american foreign policy making with every president since world war ii. talking about withdrawing from nato, talking about encouraging the japanese and saudis to get nuclear weapons. talking about ordering american soldiers to commit war crimes. you could go on with the list all day. i would take issue with your account of secretary clinton's record. i think that is an account of president obama's record. and the secretary is on record -- she can't say this but we as republicans for hillary can say this. she is on record as having disagreed with the president when it comes to leading from behind in libya and for -- and into not taking more serious action in syria to prevent the americans -- >> i didn't go into the long list of ethical challenges, character issues, the server, the fbi investigation, the clinton foundation, the -- at least the perception that maybe some state department business was influenced by donations to

the clinton foundation. i didn't mention any of those. meanwhile, you've got a candidate that got more republican votes in the primary than any candidate in history, and it just seems to me you're looking at all those people and saying somehow you have a better eye or you can look more into someone's soul than they're able to. what do you say to those people? they're clueless? >> look, it's a free country. people are able to form their own opinions. they're entitled to theirs. i am entiled to mine. those who are sdissatisfied wit donald trump are absolute allowed their opinion. >> i didn't mention jeff sessions, chris christie. was roger stone -- he is admittedly your mentor, right? >> he is somebody that was a part -- business partner of mine. i worked closely with him and learned a lot about politics from him.

>> how much money has your pac raised so far? >> so i am not going to talk about details. we started only over a week ago. we already have contributors and supporters in ten states including a number of the swing states that are going to be crucial to deciding the election. we are really just rolling out. we will get, i think, much more fully engaged in the broadcast world after the conventions. but there is a lot of republican -- traditionally republican donor money that is on the sidelines because of people understanding that donald trump is a temperamentally unfit to be president. that money is going to go somewhere. >> i guess everybody is viewed relative to where they're standing on the issues. i guess you are a hero among certain circles on what wouldn't normally be your party since you are a long-time republican. i saw what happened to mitt romney. what are you hearing from former friends on the right side of the aisle? >> you know, it's -- it crosses the spectrum. i have gotten a lot of hate

mail. i've gotten a lot of all caps screaming and cursing from donald trump supporters. >> i love that on social media. they're just all caps. >> exactly. >> does anyone -- >> exactly. >> does anyone do the shift button and go all across the top? i guess that stands for a lot of curse words. >> yeah. i see that too. i have also gotten a lot of people saying, i am your target audience, thank god you are doing this. we appreciate you're doing this. it's a big country with lots of different opinions. >> it's the devil you know and devil you don't know. there are supreme court nominations coming up, domestic policy. to get that firmly ensconced on that side you have to have some pretty bad feelings towards the man's personality, i guess. >> look, it comes down to this. if we -- if donald trump blunders us or badgers us, which i think is quite possible, into world war iii, tax policy, even

social policy through the supreme court will be seen as second-order things. they'll be seen as lesser importance on whether this country gets into world war iii. >> predicting a world war iii from trump might be a -- some people might push back on that. if it were to result in world war iii, granted i'd rather have hillary too. thank you. >> that's where we are. >> appreciate your time. >> thank you. when we return, breaking data on inflation. the producer price index is minutes away. plus the world health organization making a new call on the zika virus and the summer olympics. we have the details on that next. my mom loves giving me advice. she even gives me advice...

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ju welcome back, everybody. the threat of the zika virus looming over the upcoming olympics in brazil, but the world health organization says the risk is not high enough to move or to cancel or postpone the summer games. officials said that the olympics could help spread the mosquito-borne virus globally but not more than it's already spreading. we're minutes away from the may ppi and then the era of courage. news icon dan rather joins us ta talk the race for the white house and what he is doing and, you know, how -- he is not 83. there is no way. we'll talk to him about never retiring, too. because that's me. sorry, andrew. sir! it's the president!

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we are less than a minute away from the latest data on producer prices. we look at the markets. you sigh the futures have been in positive territory all morning. the first time this week. the dow futures up by close to

50 points. the s&p up 4 points and the nasdaq up by 12. check out the bond market. that's the one we have been watching closely. the yield this morning higher than yesterday at this time. 1.627%. of course, we have seen pressure on a lot of these bond yields. rick santelli standing by in chicago. take it away, rick. >> all right. let's start with empire manufacturing, shall we? june number up 6.01. following minus 9.02. better than expectations. just in april we were closer to 10. if we look at the ppi numbers for may, up .4 on headlines. strip out the all important food and energy. this is is a bit of a surprise. expecting up 110. sometimes when it's hot you get up .2. this time up .3. yes! if we look at ex-food and energy on a month-to-month. trade balance -- trade side, that's down .1.

looking at everything together year over year. ex food and energy or core year over year up 1.2. .3 hotter than the last look. on the trade side, the year over year figures were up .8. that's pretty much in line and follows .9. so let's hit the highlights. it's pretty much ex-food and energy that's hotter than we anticipated. that's pretty interesting considering, of course, all the pressures that we have seen on the rebound in energy in the last six weeks or so. now, as far as interest rates, we're at 1.62. that's lower in price and higher in yield than we were spending time beyond a reasonable doubt. foods slightly into positive territory. everybody is blending most of the dynamics on brexit but they were firmly in place before brexit became an issue and the issue being whether they're going to leave. that's what we're talking about here. i could never prove causation and no doubt brexit has turned

up the heat. if you're going to boil water, you could get it a little more ra rambunctious. the water was hot to begin with. back to you. >> i dare say hotter than a laredo parking lot. the market and the futures and the stock market, all those markets have been shakier than cafeteria jello. down four straight days. up about 47. i got more! i got -- i got more! [ laughter ] >> we want new ones today if you've got them. i had them add in a market summary for me. just so i could do -- rick played into it. he gave me something hot. he didn't give me anything tighter than a tick, but he gave me those two. dan rather. >> performing for dan rather. he's rather to talk politics. donald trump and hillary clinton sharpening attacks as the race for the white house heats up. our next guest has seen his share of elections. dan rather a reporter at the

democratic convention in 1968. he was in the middle of a real fight on the floor, was punished in the stomach after attempting to interview a delegate from chicago. joining us now on set. dan rather, host of the big interview on axis tv, the former cbs evening news anchor. great to have you here. what a food fight this is, if not a real fight. >> great to be here. >> what do you make of the recent decision that donald trump made to exclude or pull the credentials from the "washington post"? >> first of all he is entitled to do it. it's his campaign. he can give accreditation to whomever he wants to and pull it out. i don't think it's a smart political move. my own personal opinion. you can say i'm a reporter and biased. it's rare in politics when anybody at the presidential level can sustain hostility at the press for very long. the record shows that for a short time there may be a gain

but long poll it doesn't play very well. >> his whole campaign he embodies the idea of playing against the big institutions. >> exactly. i was going to say it fits his campaign strategy, if one could call it that. i'm not sure he has a strategy. i don't mean that in a derogatory way. he has gotten a long way by sort of ad libbing it, if you will, as he goes along. he does fit, i'm the way to take on the big institutions. "washington post," i'll show these guys. everything else, talking about such things as rea assessing nato, possibly encouraging the japanese to have nuclear weapons. i mean, so his argument is that the "washington post" and those things. he is succeeding because he plays on, as far as i can analyze, because he plays on fear and anger and dominates nearly every news cycle. >> the converse of this, dan. i think about the coverage by a purported news organization,

"huffington post" of donald trump. started out for the first six months, would not put him in the political section but chose to put him in the entertainment section of the news. now, i always like to read this. every article about donald trump there is an editor's note at the bottom. the editor's note says, donald trump regularly incites political violence, is a serial liar, a rampant xeno phobe, a racist, misogynist and a birther. >> other than that he is a nice guy. >> can you imagine cbs news -- or can you imagine a news organization -- this is the world we're in right now, seems like. >> it is. so far trump has won. put me on the record. i am not predicting he will win. i will say he's capable of winning in november. he has a path. underscore -- i am not saying he will win but he can win. i think, my own opinion again, democrats who want hillary clinton to be president should be afraid.

they should be very, very afraid. >> his path, does that come with becoming more moderate along the way? >> no. >> toning things down or does it from from continuing what he's done? >> anybody who thinks donald trump will moderate himself along the way is slightly touched or smoking something very expensive. it's just not going to happen. >> republicans as a whole, or many establishment republicans, say he doesn't have a chance, but i hear from a lot of people that might lean one way or another -- or maybe more democrat saying we need to watch this guy closely and not underestimate him. >> that's because he has been underestimated the whole time. >> it's almost like they want to say do not get over confident or complacent or you could lose. a lot of establishment guys have written off donald trump. >> well, that's true, which has helped him in a way. it plays against, listen, i am against the elite. i am against the big guys in washington. before this campaign is over it

will be nastier than a possum's mouth. it will get really, really ugly. >> that's a good one. >> we're in the betwix and between period. the convention season has not begun. the race is very fluid at the moment. we in the press, if anything, we over cover particularly the horse racing. you could go away and not come back until sometime after labor day and not miss a whole lot. >> do you think the media covers both of these candidates properly? >> or either? >> the media coverage? i'm sorry? >> do you think the media properly covers these candidates? >> no. i include myself in this criticism. i do not except myself. it's cliche but it's become a cliche because it's true. too much on the horse race, not enough on the substance of the race. again, you know, with a lot of contention to donald trump lifts the credentials for "washington post" reporter, compared to some of the things that he is proposing for the country, dramatic changes in economic

policy, foreign policy, a matter of social policy, they all get under covered. as i say, i've done it. i do it. we all do it. it's -- it's become a national ritual. and i do think that a lot of people at home watching have it in pretty good context. they understand that we all have to fill air time. we have to fill a certain amount of air time. whether there is any real news or not, we're going to be talking about the presidential race and preparing putting breaking news on it, by the way. >> now that we're down to two candidates, do you think that the debates that will come in the fall will be more substantive than what we have seen to this point? >> one can hope. but not to be light about it. i do think that now that it's down to two that it's a little easier to say, well, let's pull back and deal with some substance. but, you know, i have been covering politics since 1952. somebody said since trigger was

colt. but hasn't been quite that long. but it's become ritualistic. let's face it. in today's digital and media environment, where you have a deadline every nanosecond, the certain inevitability that the coverage will be thin and light rather than substantive. >> you said 1952. i kid andrew. i actually saw the moon landing. there are certain things that actually i am glad i have the experience of. i'm afraid to get old, obviously. 1968. you were there. we think about this unprecedented political environment we're in right now. i don't even know if it measures up to that. does it? >> that's a very good point. the closest we have had to this campaign year, every campaign for president is unique. but 1968 would be the closest. keep in mind, we've gone through a period with dr. martin luther king had been assassinated. senator robert kennedy had been

assassinated. >> was that after kent state. >> that was '70. >> the whole business of the vietnam war. when you say this is a tumultuous time and you had the insurgency of the democrats -- you may want to note and remember that they lost in 1968 partly because the party was so split asunder. >> how do you think the massacre in orlando will impact this election? and the dialogue? we have been having obviously debates about gun control. there have been debates about immigration. fbi. security. >> the tough one to figure. i may be tacking against the wind here, but i think at least in the short to medium run it may benefit donald trump, because there is a good deal of fear and some anger about what's happening. and in the wake of something like florida -- look, i thought -- for what it's worth, i thought president obama's statements yesterday were measured, thoughtful, the kind of statements you expect from a leader. but keeping in mind that donald trump has gotten a long way by

exploiting fear and anger and recognizing that fear and anger have increased in the wake of florida, i wouldn't be surprised to see it help him, as i say, in the short run. in the long run, i am not so sure, because the democratic forces increasingly will be raising the question -- not my question, they're already starting to raise it -- is donald trump right on the edge of being not exactly unhinged but is he stable enough to be president? and that old question about who do you want answering the red phone at 3:00 a.m. in the morning? i think trump is vulnerable to those kind of attacks in the long run. >> hasn't he always been vulnerable to that attack? >> he has been but nobody has effectively mounted it yet. you can make the argument that hillary clinton had to spend so much time trying to win the nomination that she couldn't turn on that. also you could make an argument the democrats don't want to unload fully on that until after labor day until the race gets --

>> that was hillary clinton's speech last week. foreign policy. it was the basis of her speech. >> you'll seen a ad where the red phone is ringing from benghazi and someone is sleeping. we have no idea how trump would react to certain situations, we have a pretty long foreign policy record as secretary of state for secretary clinton, which the right is going to use in the negative way. >> that's why i say, in the short to medium run i think it advantages trump. after labor day, we get into the real -- >> you would have never shied from using the term "islamic extremism," though, if that describes, in the fewest number of words what we're dealing with, you would not have probably avoided using that. in previous encounters with whatever are the enemy happened to be, we never, ever shied away from worrying about -- >> that argument has gotten a long way. it's -- for fairness in context, president obama's argument, as i understand it, is partly,

listen, our leading diplomats and many of our military people say this is not a good idea because it plays into the hands of the extremists. but again -- i think people in the -- most people wouldn't shy away from using it. radical islamic extremists. >> even slip and say it just once it's -- i don't know. it -- i don't know. i've never heard isis either. >> you come -- >> what's the difference between isil and isis. can you explain why it has to be isil when everyone says -- >> i have thought about it. isis. it's not a state. you don't want to give it the credibility of being a state. >> i do think, again, this is -- where trump pours through this kind of opening. he can keep the concentration on, listen, the president won't use the term "radical islamic terrorists." >> the bigger issue trump is

going to use. rick scott, the governor from florida, last night saying -- even hillary clinton the other day, who was she talking about when she said i don't think containment is the way to go. we need to destroy isis. there is only one person she could have been talking about, right? >> as i say, i think they're vulnerable on this argument, not particularly -- intellectually there is a case to be made for not using it. but the tone is so important in politics, and the tone on this issue is advantage trump and the republicans. >> quickly before we go, vice presidential candidate. how important do you think it ultimately is? do you think hillary clinton will pick somebody who will pull her more left, closer to the middle? and who do you think donald trump will or should pick? >> i have no idea. general speaking in presidential politics all you ask, what you ask and all you ask of your vice presidential nominee is they don't make any big mistake, don't embarrass you and they carry their home state. i will be surprised if hillary

clinton doesn't abide by that. i have no idea who she'll pick. i think she is thinking seriously of a two-women ticket. >> you think that women is elizabeth warren? >> i do. i'm not saying she'll pick her. >> don't you think it will make it harder for her to win? certain people right now are not predisposed to vote for trump who will sort of hold their nose at voting for hillary clinton -- >> i think there are. >> but they have more vehement feelings about elizabeth warren. >> i agree. on the other hand, hillary clint clinton's best argument is, listen, it's time for a woman president. i have no idea whether she'll pick warren. i think for hillary clinton, as a matter of fact, it might not be a bad idea to pick somebody out of the military ranks. a surprise, somebody from the military ranks, a male, i think it would help her some. i wouldn't be surprised to see trump pick somebody -- i don't think he'll pick ted cruz. but, again, who knows about

trump. i will say with trump, i think it will be a surprise with trump. with hillary clinton, probably not if she doesn't pick elizabeth warren -- >> did you know him? did you have a friendly relationship with trump? you must know him. >> i did. in the past tense. i met him in late 1979, early '80s. always got along well. we did a 60 minutes 2 story on his 2000 flirtation with running for president. he didn't like it. he lifted my credentials after that. >> robert redford. that was the guy that -- i am thinking if they ever do meet, do you suggest ryan reynolds. ryan gosling or reynolds. >> ryan reynolds. >> i agree. >> i'm surprised you're not going for clooney. >> that's probably in a movie coming soon. >> robert redford is pretty -- who plays me? do you remember butch cassidy? he was the heartthrob of the world. now he's dan rather. you were not unhappy, were you?

>> i was not unhappy with the choice. he did a great job. maybe clint eastwood could play the part. >> i like that. >> that's good. he's 85, though. 86. when we come back, the need for speed. jay leno is back for a second season of jay leno's garage. we go behind the wheel with him next. right now, though, as we head to a break, quick check on the futures. markets have been higher. dow futures up 45 points this morning. "squawk box" will be right back. ♪ in new york state, we believe tomorrow starts today.

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the second season of jay leno's garage premieres tonight on cnbc. jay gets an exclusive look at an ultrapowerful mega car. mega ca. the engine has a great pistol roll ground to it. you can hear the mechanical parts moving. it feels good. initial impression is how comfortable the car is i have plenty of leg room. i'm 6 feet tall. i have a lot of cars with race seats and these are the most comfortable race seats i've ever been in. now, when you first started this company, did people think you were crazy? >> yeah, pretty much. >> yeah, pretty much.

i was 22 years old. this was my childhood dream. i have tinkered with motorcycle cars an boats and stuff but i wanted to prove to myself the most difficult things i could prove of and prove to everyone is something i love which is cars. i see just going to do it. >> and you can watch "jay leno's garage" tonight at 10:00 p.m. eastern and pacific. neat looking car. up next, jim cramer will join us live from the new york stock exchange, we'll get his take from the latest stories. squak b "squawk box" will be right back. olay luminous illuminates skin with pearl optics science.

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welcome back to squawk. jim cramer joins us now. good morning to you. >> good morning, drew. >> i don't know what's on your radar. we've been talking brexit and of course, fed. we'll be watching miss yellen. i'm not sure she will necessarily say anything. >> i think oil is trumping everything. as soon as you see the oil down, the ag rhythm is say you have to sell the market. there is a brexit breather it is oil in control and i think that we have the inventories at 10:30 and are very odd that this is more important right now than what yellen might be saying. i don't know how we got so out of synch that this is what matters but that is what is calling the tune. >> did you see any comments that

gunlach made? >> there might be a buying opportunity. the guy has been so negative. now, of course, if you see reports that maybe the british banks will be down 40% by bernstein. maybe that is what he means buying opportunity out there. the nature of some people towards these managers is it is counter productive. it is a counter productive thing. >> it is a question we asked some of the investigators this morning. if you had cash on the sideline, a little bit on the side right now, do you wait until the brexit thing is over? >> you buy utilities. utilities stocks, when they come in, they're such terrific buys. either way, you're just going to get a great return versus treasuries and a lot of the utilities are offering really fabulous returns right now, so you don't wait on those. you buy the companies that have good yield and you'll do well. >> jim cramer we'll see you in a couple of minutes. when we return, a building implosion gone way wrong. we'll show you that video next.

>> a programming note for you tomorrow, right here on squak box. mohamed el-erian will be our guest. stick around, we'll be right back. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪

♪jake reese, "day to feel alive"♪

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take a look at this implosion video. this is an implosion gone wrong. crews were set to implode the taller of the two towers at the rivera hotel in las vegas but when it was time for the big moment, the first charges blew and the flood lights turned off. it happened in the dark leaving spectators confused. no word on why the lights failed but the implosion was not supposed to be a spectator event anyway, so don't worry about it. >> the taller -- i'm trying to think, the rivera, you say. >> i believe. the rivera hotel in las vegas, not sure where that is on the strip. >> an older properties. >> you're a hard rock guy, i think? >> what? >> when i was younger. >> hard rock when you were younger. >> that is modern. >> now i stay at the di. >> the where?

>> the desert inn. like howard hughes. >> today you're like a bilasio man. >> i might stay at the wynn. join us tomorrow. as for now, "squawk on the street" is coming right up. good wednesday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer at the new york stock exchange stocks stable this morning after four days down. we have a fed statement today at 2:00 p.m. eastern time. a press conference, europe is making up for some of this week's losses, both ppi and empire running warm continuing this week's flow of pretty positive data. our road member starts with fed day. we'll hear from yellen. bank of america set to cut thousands of